Legal Question in Wills and Trusts in Florida
If a loved one dies, and they have a business and loan associated with the bank, do the beneficiaries automatically go on the loan and are grandfathered in for the loan on the note, example: Like the PR has the power to add their name to the accounts. Do the beneficiaries have that same benefit to be grandfathered in on the loan with the bank for the business. What all would a bank ask for when one dies, and there's a mortgage on the business? And if the business has been in business for more than 30 years, and you can show profit, would that be enough for you to be added to the loan? How does it work? Say, what if someone lost their own personal home, and their credit was effected a little? How would that effect your inheritance to be on a loan for the note on the business you've inherited? Just a few questions to see how it does work with the banks for the loan on the business? And, if the PR pay extra on the loan, but forces shares on the other beneficiaries, saying it's not making money, what happens in this event? Thank you.
1 Answer from Attorneys
First the loan documents will control who is responsible. The beneficiaries don't automatically become obligated on the note, however, if they want to keep the business they will have to pay the loan OR the bank can sue to recovery its interest. You need to have someone review all paperwork to determine the rights and obligations of the parties. A beneficiary does not have to accept any inheritance that he/she does not want.
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